A new “millionaire’s tax” in Massachusetts was expected to generate $1 billion in revenue last year to help pay for public education, infrastructure, and early childcare programs, but projections were a bit off, according to a fresh state analysis.
The state Department of Revenue estimated late last week that the Fair Share Amendment, which requires people with incomes over $1 million, to pay a 4% annual surtax, will add $1.5 billion to state coffers this fiscal year, which ends in June—surpassing expectations.
Universal free school meals, much-needed improvements to an aging public transportation system, and tuition-free education for community college students are just some of the programs Massachusetts’ wealthiest residents have helped pay for after voters approved the law in 2022 amid growing calls across the United States to tax the richest households and corporations.
Even removing the terms “surplus wealth” and “extracted” - which I don’t necessarily disagree with in all instances but which isn’t going to win anyone over - this still is not some undue burden.
I’d like to see this tackled as a simple conversation between discretionary and non-discretionary spending. A poor person struggles with even sales tax increases because they have little discretionary income. A rich person has vastly more discretionary income and thus is the least burdened by new taxation of any sort.
Gets around all the “fair tax”/“flat tax” arguments right from the jump.
That’s a great point and I’ll remember it for the future.